Case Study of Google in China

Google in China Case Study Analysis When Google detected an extremely high level of attempted hacking on its computer systems, it issued an online memo that indicated its possible exit from the Chinese market. The Wall Street Journal captured this adequately in its headline for its edition on 13th January 2010 as, "Google warns of China Exit after Hacking." Based on proof gathered from the same, it seemed that the attacks had been directed at gaining access to the email accounts of human rights agitators from China.

According to Google, the attacks had been unsuccessful. The company, however, indicated the balancing act that they had to engage in ever since coming into the Chinese market. The Chinese market had required a lot of thought being put into the information availed to the Chinese people, as there was a lot of censorship and limitations on the information that they could access.

Quelch and Jocz (2010, p.1) highlighted this by saying that Google coming from a position of unwillingness to continue in information censorship, especially in the light of these hacking attempts as well as more restrictions on free speech on the internet, had decided to engage the Chinese government in deliberations on running Google.cn without censorship. Failure to meet this condition would result in their exit. Do the reactions from stakeholders give Google any comfort? Reactions were varied on the possible impact of Google's exit from China.

Stakeholders were of different opinions, some agreeing and lauding the move, while others foreseeing a loss of business opportunity from the move. Robert Enderle of the Enderle Group was of the opinion that if China refused Google's terms, then the company would effectively lock itself out of one of the most rapidly expanding markets in the world (Quelch and Jocz, 2010, p.4).

Jonathan Zittrain, from Harvard University, termed the move brilliant, saying that it supported the free and open dissemination of information rather than metering out according to undesirable (and capricious) government standards (Quelch and Jocz 2010, p. 4). The U.S. companies have remained silent on the issue, refusing to acknowledge that they have been subject to these hacks as well. The government on its part was also hesitant to take a strong stance on the issue.

Google can thus not draw any comfort from any of these stakeholders, but must be ready to stand on its own, defend its position or continue to accede to China's demands. Do you recommend that Google exit China? Give specific reasons for your decision.

In their online memo, Google stated that they had launched Google.cn "in the belief that the benefits of increased access to information for the people in China, and a more open internet outweighed our discomfort in agreeing to censor some results (Quelch and Jocz, 2010, p7)." " This is a clear indication that the decision was against what the company stood for and its mission, which is to make the world's information universally accessible to all.

Thus, Google should hold the discussions with China, but hold to their mission, and if the talks fail, they should exit the market on these grounds. One blogger Xiang Ligang, writes that exiting the Chinese market will be a major blow to the company's global strategy and affect its future strategic layout. However, based on their goal to always.